Cost Estimates Part 1

Question 1

are prepared throughout the planning, design,
and construction phases of a construction
project

Answer 1

COST ESTIMATES

Question 2

is a major factor in most decisions regarding

construction,

Answer 2

COST

Question 3

TYPES OF CONTRACTS

Answer 3

OF CONTRACT

1. Unit Price
2. Cost Plus
3. Lump Sum
4. Target Cost

Question 4

 Factors favoring the use of a specific contract

Answer 4

• Providing incentive for efficient performance
• Introducing changes during construction
• Allocation of risk between owner & contractor

Question 5

The contractor set a price for each item; the owner

doesn’t know the details of each item pricing

Answer 5

UNIT PRICE (Admeasurements Contract)

Question 6

can be used when little or no changes are

expected, level of risk is low and quantifiable

Answer 6

UNIT PRICE (Admeasurements Contract)

Question 7

A single tendered price is given for the completion

of specified work

Answer 7

LUMP SUM

Question 8

• Payment may be staged at intervals on the

completion

Answer 8

LUMP SUM

Question 9

This contract may be used for a turnkey

construction

Answer 9

LUMP SUM

Question 10

The contractor is reimbursed for actual cost plus a

special fee for head office overheads and profit

Answer 10

COST PLUS/ COST-REIMBURSIBLE CONTRACT

Question 11

The fee may be a fixed amount or a percentage of

actual costs

Answer 11

COST PLUS/ COST-REIMBURSIBLE CONTRACT

Question 12

May be used when the client wishes to be involved

in contract management

Answer 12

TARGET COST CONTRACT

Question 13

• is the compilation of all the costs of
  the elements of a project within an agreed upon
  project scope.

Answer 13

ESTIMATING

Question 14

 It is the production of a statement of the
approximate quantity of materials, time and costs
to perform construction decisions

Answer 14

ESTIMATING

Question 15

is to produce an
accurate, cost effective prediction of what a project
will most likely cost and it needs to be done in
different manners at different stages

Answer 15

objective of cost estimate

Question 16

the degree of approximation is even greater
because of the difficulty in predicting all the
probabilities of items such as labor productivity and site
conditions

Answer 16

Pricing

Question 17

Two activities are involved when carrying out an

estimate:

Answer 17

Measurement and Pricing

Question 18

There are two distinct tasks in estimating: (Purpose)

Answer 18

To determine the probable real cost of the project
 To determine the probable real time to build the
project

Question 19

The person who prepares estimates in the planning,

design, and perhaps construction stages

Answer 19

ESTIMATOR / QUANTITY SURVEYOR

Question 20

He or she must also be knowledgeable of the
expected life of construction materials, accounting,
taxation, law, economics, and awareness of
engineering design

Answer 20

ESTIMATOR / QUANTITY SURVEYOR

Question 21

The following factors affect the accuracy of cost

estimates:

Answer 21

1. Site, location and accessibility
2. Subsurface and soil conditions
3. Time and season
4. Climatic conditions
5. Wage agreements
6. Market prices of basic materials
7. The demand for construction

Question 22

_____ should have a thorough knowledge of
building trades and types of construction and
methods of construction

Answer 22

 Estimator

Question 23

The costs that spent on a specific activity or project can

be classified as:

Answer 23

Fixed cost
Time-related cost
Quantity-proportional cost
Project direct costs
Project indirect costs

Question 24

 The principal components of a contractor’s costs

and expenses result from the use of______________________________

Answer 24

labors,

materials, equipment, and subcontractors

Question 25

Additional general overhead cost components | include

Answer 25

taxes, premiums on bonds and insurance, | and interest on loans.

Question 26

costs that spent once at specific point of time

Answer 26

Fixed cost:

Question 27

costs spent along the activity duration | e.g., labor wages, equipment rental costs, etc.

Answer 27

Time-related cost:

Question 28

costs changes with the quantities | e.g., material cost

Answer 28

Quantity-proportional cost:

Question 29

These costs are estimates based on detailed analysis of contract activities, the site conditions, resources productivity data, and the method of construction being used for each activity

Answer 29

Project Direct Costs

Question 30

Indirect costs comprises

Answer 30

project (site)overheads and general (head-office) | overheads

Question 31

The cost of items that cannot be directly | charged to a specific work element

Answer 31

• Project overheads

Question 32

It includes site utilities, supervisors, parking, | offices, workshops, stores, first aid facility

Answer 32

• Project overheads

Question 33

The costs that cannot be directly attributed to | a specific project

Answer 33

General Overheads

Question 34

They represent the cost of the head-office expenses, mangers, directors, design engineers, schedulers, etc.

Answer 34

General Overheads

Question 35

3 Major Types of Cost Estimate

Answer 35

1- Conceptual cost estimates 2. Semi detailed cost estimates 3. Detailed cost estimates

Question 36

are developed using incomplete project | documentation;

Answer 36

1- Conceptual cost estimates

Question 37

are prepared when parts of the project have | been completely designed;

Answer 37

2- Semi-detailed cost estimates

Question 38

are prepared based on fully developed | construction drawings and specifications

Answer 38

3- Detailed cost estimates

Question 39

Prepared with very little information, relying on | historical data

Answer 39

1- Conceptual cost estimates

Question 40

usually made without detailed design and | engineering data

Answer 40

1- Conceptual cost estimates

Question 41

also defined as approximate estimate and used to | know the budget for a project

Answer 41

1- Conceptual cost estimates

Question 42

Used to verify that the project can be constructed | at its intended scope within the owner's budget

Answer 42

Semi-detailed Estimate

Question 43

The time taken to prepare this type of estimates | is longer, but the accuracy is greater

Answer 43

Design Estimate

Question 44

The estimate in this stage will be based on a | design that is 60% complete

Answer 44

Design Estimate

Question 45

The estimate at this stage is a tool used to verify that the design is within the owner’s budget, and to identify any good cost saving ideas

Answer 45

Design Estimate

Question 46

necessary to perform a | cost estimate

Answer 46

Quantity Take-off

Question 47

is the number of units of work produced by a unit of equipment or a person in a specified unit of time

Answer 47

Production Rates

Question 48

 Initial (preliminary) estimate of the project costs at the different stages of the project  Preparing the BOQ as a requirement of the contract documents  Estimating the work done for issuing the contractor payments

Answer 48

Quantity Take-off: | Owner perspective:

Question 49

 Pricing different work items  Identifying the needed resources (Labor, Equipment, etc.)  Project schedule  Preparing invoices for work done  Subcontractors payments  Review and control of crews production rate

Answer 49

Quantity Take-off: | Contractor perspective:

Question 50

Units of Measurements

Answer 50

``` Each length area volume weight lump sum effort ```

Question 51

Measuring units

Answer 51

``` cubic meter square meter linear meter number lump sum ```

Question 52

``` Lump sum(L.S.) Used for items such as: ```

Answer 52

Manholes - Lifts - Item is subcontracted when the contractor does not have enough experience to construct it or there is an item which has a small quantities of many work items, such as manholes.